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tv   Closing Bell With Maria Bartiromo  CNBC  June 11, 2012 4:00pm-5:00pm EDT

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>> we will remember you said that. good to see you. that's the first hour of "closing bell" this monday. much more to come. welcome to "closing bell." i'm miami with bill griffeth. maria bartiromo is back tomorrow. stocks selling off late in the trading session after early enthusiasm over a bailout in spanish banks fizzled. a trio of top strategists explaining how you should be investing in this uncertain environment. apple unveiling updates to its macbook pro. is it enough to jump start the stock? so far no. the dow jones industrials average sitting at the lows of the session. have been up as much as 200 points. nasdaq was higher by -- lower by
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48 points. s&p 500 lower by 16. >> yes. investors finally meeting a bailout it didn't like. wall street. stocks down after that big bailout announced for spanish banks over the weekend. led by losses in bank stocks, technology was weak today. question is what does this market want to see to shake off fears about europe right now? >> guys, jean, let me start with you. what was the problem today? why was everybody unimpressed? >> as soon as it was seen there was some relief with respect to spain, then the focus went to italy. i think this is going to be a recycling concern for a while longer. but i think that the market is going to begin to dig in here and identify support. probably not too far from the lows we saw last week. >> jim, do you agree? is it an absence of more guidance about the u.s. economy?
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so we have -- only thing we have to focus on is what's going on in europe now? >> yes. i also think that part of the problem is it was terrible deal in europe. have you talked about the word subordination all day. money is coming from the esm which hasn't been approved by the german parliament which said they would never approve a bailout of another country. that's exactly what they are trying to do. the deal has so many problems. it is hard to tell where to begin with it. it is like it is a non-bailout bailout which the market took most of the day to figure out that nothing really changed from saturday. was just lot of promises they have not gone into any of the details. >> zero clarity and uncertainty. that's aa negative for the markets, isn't it. >> yes. it does. i think the market is just going to chop around here and really not be able to make any headway until, one, we see the clarification in the european situation. incrementally making small steps. frankly acceleration in the u.s.
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that's not really close at hand. that's why we go back and forth. >> gene, my old friend, having said all of this, though, you felt going into this week we were oversold. we had a very tough month of may. even with last week's greek rally. with today's sell-off. would you be a buyer here? is that what you are saying? >> i would be. i think that at this point, bill, it is time to look to take advantage of the fear to buy. we did finally touchdown the average broke at momentarily. the dow at -- intraday. that's the first time in six months that occurred. even with all the baggage the market took an obligatory test. this decline today is really probably a retest of that average around 12,250. a lot of groups are really starting to hold up quite nicely. many of the same groups that drove the market out of the 2002 bottom and then again the bottom between late 2008 and early 2009. >> which groups are those?
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>> think there is consistent leadership in this market who do you like best? give me a sector. >> well, i like the pharmaceuticals but also like technology. i like agriculture here very much. and even though with the budget concerns i think eyre row space and defense is a very attractive area that's showing good relative strength in the environment. i think that this is an environment where you can choose some value. i would emphasize more the growth sectors of the -- >> what would you tell people to do here? >> i think income coreiented stocks and bonds are the place to be over the next, say, three to six months until we have clarity. until we have higher growth. i think utilities will do pretty well. i think reits will do pretty well. high-yield bonds. >> jim, this market is desperate important some sort of clarity. they are not going to get it any time soon. what do you like here? >> they are not going going to get it now. i'm more defensive. i think it will be the return of capital and return on capital.
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i would stay probably in short-term treasuries. if you want to be speculative go with gold. i don't expect the market to do much in the next couple of months. one thing about looking at the sentiment numbers which is interesting, a lot of bullishness left market. there hasn't been a rise. everybody is still hoping that somehow there will be a magic announcement out there that will fix all of this. we saw what happened when we wait for magic announcements. they don't work out as well. i think that's why this market will struggle. >> getting tired of that. less and less of it. thank you. nice to see you. >> great to see you. tough day at the office for the bulls. this final hour, we lost a number much points on the dow. bob pass angie our eye on the floor. >> hello. thank you very much. the key stock of the day, not just spain. apple really did move the markets because the developers conference, there were a few items of interest. i like the maps idea. bottom line is no big blockbuster. when the market realized that, a
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little after 1:00, apple started moving south and then take a look at the s&p 500. the same thing happened. volume was heavy in apple here. north of 20 million shares for that stock. there is the s&p. practically mirrored apple today. that's the number one stock of the day. things going on in spain not helping as well. when oil -- another problem for the market, broke below 83, 2:00 eastern time, eight months low. forget about it. all the exploration and production stocks and oil service, they started heading south as well. when you get that, you get other announcements. materials stocks weak throughout the day. goldman sachs had very negative comments. they didn't have positive things to say about the steel sector. steel on the week side. down 5, 7%, typically you will get the coal names as well and could it get any worse for coal? down again today. 6, 7, 8, 9%. this is the first time a euro
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bailout has really failed in the markets within hours of an announcement. we get any follow-through. follow today really only on the moderate side. we are getting a quadruple witching experience. pickup of volume. an s&p rebalancing at the end of the week despite that. getting a lot of people staring bug-eyed into the cameras, into the observation decks here. waiting for some more euro headlines. >> thank you, bob. >> markets may have just closed. we are just getting started here on the "closing bell." >> lot more to come. >> apple unveiling new software and laptop updates at its developers conference. will it be enough to recharge apple's stock? walmart is sitting at a 12-year high. despite a bribery scandal and shareholder dissent. has this stock rallied too far too fast? >> you have a device here terrifying. >> 15 shotgun shells. >> when you fire this off, could anybody survive underneath this? >> not a chance.
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well, you can see what happened to apple shares today. we are seeing the market less than impressed after afterannounced upgrades to its new macbook line. >> chart expresses disappointment. it hurt apple's shares, helped lead the markets lower. what should apple investors be doing? let's hear from stern wu and daniel ernst. and jon fortt. daniel, what was the problem? intraday chart tells a story investors were extremely disappointed. what was the problem today? >> i think the markets are a little bit wrong today on apple. this happens every year at this event. it tends to be more incremental improvements. operating system updates, refresh -- >> no big wow product? >> no.
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i think -- together, all of those announcements, they significantly raised what was already a very, very high bar for what windows 8 are going to find this fall. when they come out with hardware that's going to try not -- match not only what macdoes as product but ecosystem around ipad and ios, working now better with the mac osx and icloud. it will play into the back-to-school and holiday. you will see apple shares respond appropriately when the growth is more obvious. >> jon fortt, give as you quick run-down of exactly what they did, introduced today. >> well, we saw updates. this is where updates -- more than we have seen in recent memory. wait, '09 and '10 but updated the mac os and ois 6. turn by turn directions and did
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hooks to the developers can do little things with with yicloud. macpro. impressive machine particularly for the retina display and amount of power. >> hold that up again. >> all right. are we just saying they are not impressed? are you impressed? >> yeah. we are impressed. the thing with apple, you know, everyone is expecting instant gratification and you may not get it. we actually thought that the biggest announcement was actually around china how they are doing better language support. they are also -- adding search. making it more friendly for the china market. china today is, i believe, apple's second or third largest market. it could end up being the largest. we think this is a good sign that they are going to get closer with china mobile with all their subs. >> dan, based on what you said earlier, i'm assuming you would tell people to buy the stock after this pullback today.
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>> yes. it is already cheap. they are growing earnings close to 100% over the last 12 months. and the stock trades at 12. so i think it is probably the cheapest name when you adjust for growth. cheapest name in tech on an absolute level. i think there is a lot of opportunity there. again, i think the mac tends to get a short trip. so much growth and has come from the ipad and the iphone. if people forget they only have 6%. >> they can still grow. william power. >> yeah. what do you have on this? what did you think? >> well, i think it is -- as jon noted there were a lot of nice new features announced today. i think mostly around ios 6. mapping, facebook integration, siri. a number of very excite things that bode well for iphone 5 in the future. disappointment for investors was around itv. it was many something we had been expecting. but i think that's what created
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the weakness in the stock. >> you were at the event. how did he do? >> yeah. i was at the event. i thought he did a pretty great -- pretty good job. the thing about tim is, you know, he's not known for his vision. he is known as more as an operator. i think he is showing signs of being a visionary himself. obviously, you know, steve jobs is, you know, tough to replace. he will not replace him but i think he has his own -- i think he is doing a good job by starting vision and getting people fired up about apple. >> jon fortt, do you agree? is that the sense you are getting as well? >> definitely. i think another important thing to note about this is the amount of partnering that apple did. look at how deep they got with yelp, open table integration. entertainment answers, siri. farther nerg with database companies to do that. you look at facebook. and how they let them into the app store and other places to
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integrate. i think that sort of thing will be really important to -- as you think about the value apple might be building into this platform going forward. and the -- devices are going to get that value. particularly in the fall when ios 6 comes out. iphone 5 in the fall. these will be the things that -- that enhance the experience with those. turn by turn direction, do not underestimate the impact of those we have graphics covering you up before. show me the laptop again. new ma kmacbook pro. >> you can see how thin it is. 2200 bucks. that's about the same price as the high-end macbook pro. the important thing here is these are features built into this that you can expect to see migrate throughout the line. how they do thermals and managing heat so they can get this thin. how they do the retina display so it is sharper than you get in other laptops.
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expect the to see that throughout the line. >> will, implicit in michelle's question about tim cook is were we spoiled by steve jobs? i mean, we get a lot of announcements today. there was no gee wiz announcement like accustomed to with steve jobs when he was still running the company. are we -- have we been spoiled? is this what we should get used to under tim cook? >> well, i think we were spoiled in some respects. needless to say, it will be difficult to dash to replace some of the magic steve jobs brought to the table. i think that said, other guests have noted, tim cook is doing an admiral job thus far for the company. he has his own ways of proceeding. and -- i think at this point, though, you know, done a very good job leading them in the right direction. >> all righty, guys. thanks for joining us. appreciate it. we will see how this unfolds. we often see this after an announce many, disappointment. >> that happened the last few times here for the markets but then comes back again. >> are apple's announcements
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today enough to convince you to buy the stock? we asked, you tweeted. here are some of the responses. today was a huge breakthrough in new macs and software. great setup for new iphones and ipad this fall. great time to buy in. in one year we will look back and kick ourselves for not see thing buying opportunity. apple equals impeccable execution. i will buy apple when the general markets starts to show longer-term strength, not just because of a developers conference. thanks again for tweeting in and continue to send us your comments. >> smartest viewers on the planet. the supreme court -- a supreme waste of time for united health care. insurance provider says it will not change a thing no matter what the high court rules on the new health care law which we are still waiting for. we will explain coming up. >> later, investors keep shopping for walmart. why? with the bribery scandal hanging over? court nation reagan with the magic coming up.
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it is in the process of preparing revised statements for both 2010 and 2011 after an investigation showed improper accounting and claims of the job of the ceo and cfo in the process. diamond says it now expects to receive a d-listing let prer the nasdaq. diamond foods tumbling over 7% today. 7.5%. a.k. steel fallinging to a low after goldman sachs downgraded from a sell to neutral. firm also trimming its price target to $5 from $6. citing continuing weak flat steel prices among other issues. ak steel wiping out 14% today. below $5. energy solutions plummeting after the nuclear industry service provider cut its earnings outlook for the year. the company named board member david lockwood as its new chief executive office. stock down 54% today. never a good thing. no supreme court ruling yet on
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the health care law but whatever the high court decides unite health is pledging to keep many of the costly provisions in the law even if it doesn't have to. bertha coombs with a look at why the provider is doing that and what it could mean. >> most are expecting the court ruling will come down on the last monday in june as one put it, this is a landmark december when the justices will want to take their time writing it. united health says no matter what it will keep some of the most popular provisions of the affordable care act. a smart move and one that the rest of the insurers are likely to follow. united says it is going to continue to offer no co-pays on preventative care and maintain coverage for dependents to age 26. no life-time dollar limits and option to appeal to an outside party on coverage denial. this is something industry officials saw is extremely popular. about the law. now, analysts say -- if you take
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a look at the shares. not much reaction. the move is not likely to impact earnings because these are less expensive to underwrite as opposed to the laws provision for guaranteed issuance insurance regardless of pre-existing conditions. that's a big issue that you need the mandate for. that's a key issue that would be difficult for insurers to underwrite if the court strikes down the mandate. what's weighing down the sector today is more of the fundamental. 20% after the medicaid insurer cut outlook claiming higher than, expected costs in kentucky and texas. weighing on other medicaid players like coventry health that operate now in kentucky as well. overall, bill, a lot of analysts are saying that investors right now are staying on the sidelines waiting to see what the court decides. again, we are expecting to likely be the last monday. you never know. could be next week. >> isn't interest interesting
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they are wait thing long? i mean -- >> this is the one they are going to mention in the history books and they want to write this one because this is the one that everyone is going to look at very carefully. >> they voted on it months ago. they have to craft their opinion on this. >> would want it to come out the same day we are learn being the greek elections? >> you wouldn't want it to. >> no. >> news overload. that's never a good thing. thank you very much. >> the -- they have -- don't kid yourself. world's largest retailer hitting the zone. courtney reagan next on what has walmart stock in the neighborhood of a 12-year high. super rich amping up security with killer technology. literally. great story. how far and how much money the wealthy can and will spend to remain safe.
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♪ okay. more pullout again from walmart's bribery scandal in mexico. that hasn't stopped investors from bidding up the stock to its highest level in more than a decade. courtney reagan joins us now with some of the latest details. >> the nyc comptroller nyc law department filed a suit against walmart alleging they breefrped if i had usual jerry duties by failing to handle proper claims of bribery allegations and attempting to cover them up. but the bottom line for many walmart investors replains the financial fundamentals. shares of the largest retail rer trading at 12-year highs. reversing not only the 8.2% loss in the wake of the allegations but gaining 10% more. most agree the company's financials paint a promising near-term trend. walmart's growing profitability and continuing positive u.s. comp store sales trend in the
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wake of uncertain economic conditions is encouraging. uncertain economic conditions is enough for some investors to buy into walmart and its every day low price value proposition as a defensive stock play. walmart is cutting back on cap ex as the footprint growth continues to slow and credit suisse notes this could be another bullish sign because the last time it happened five years ago investors applauded the move. not all share holders are willing to give walmart executive as pass when it comes to the event airty of the allegations. all 15 board members were re-elected blues addition of mayer. large percentage of the shareholders, including a number of large pension funds, cast votes opposing re-election of those thought to have at least some connection to alleged bribery in mexico. those votes were not enough to unseat any board members but a have strong message was sent. remember, the walton family owns nearly half of all outstanding shares and cast nearly half of the votes. i bet you know which way they
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cast. >> i think we know how they voted. stay right there as we talk more about this question has walmart run too far too fast? given the situation with the bribery scandal in mexico. you have a hold on this stock. are you surprised the stock continued to move higher even after the allegations came out of the revelations about this bribery scandal? >> yeah. little bit. i have a hold. frankly, i was warming up to the stock in front of the -- in front of the "new york times" story about the mexico allegations in mexico. so -- and then after those allegations came out they roared first quarter results and were pretty good. i mean, the fundamental picture continues to improve. i am a little surprised the investors do seem to be looking through this mexico situation as much as they have. >> i'm going to sound highly cynical by asking this question but why do you think pension funds would file a shareholder lawsuit even as the stock goes higher from here? wouldn't you think they would be
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suing in the stock web down as a result of the allegations? >> yeah. i mean, it is possible that they sold after it took that 8% hit. because they are claiming that there were some asset losses. so -- yeah, it is -- it has gone nowhere but up since a few days after that story hit. it traded down into the maybe $57, $58 area. ten bucks higher today. >> i guess we have to ask them, wouldn't we? in thdash you pointed out the fundamentals have been good. sales at walmart are back again. >> here's not to say walmart is always going to be the best play when economic conditions are uncertain. remember the right merchandise has to be there and they lost some shares to some of those dollar store competitors over the years when we were in these economic hard times. so that doesn't necessarily mean that just because the wallets feel pinched the consumers will walk through the doors at
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walmart and buy some. they do still maintain that every day low price guarantee and because of that, a lot of consume varieties hard time justifying shopping anywhere else. they can buy that colgate toothpaste for cheaper at walmart why do they buy it at the general store? >> what about that? how do you view them and the growing competition especially in tough economic times? >> well, yeah. walmart has been -- okay, they comped up 2.6% in the first quarter. walmart u.s. it was the best come in some time. dollar general, biggest dollar store player, which operates more than 10,000 stores, had a 6.7% increase in same store sales. walmart continues to lose market share albeit at a lesser rate. so i think that the competition is -- real -- very real factor for walmart and also got between 50 and 150 basis points in first quarter on the comp line from food price inflation. i mean, it is a better story
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than it was fundamentally. but i wouldn't call eight great story. even target, target comped up mo more% in the first quarter. and it is trading at a lower multiple valuation-wise than walmart. that's the name i prefer in the mass merchant space. >> is it possible there is another he to drop on the mexican bribery allegations? we -- we marvel at how well the stock has performed even after they were made public. is there something that could happen legally this could stymie this stock going forward? >> i mean, there's a big investigation, bill. so who knows what might come of that. it is going to at the very least take some time from management. mike duke even. so the ceo. you know, i'm a little surprised that walmart hasn't come out with more of a forceful statement saying that these allegations aren't true. they seem to be -- i don't want to say hiding behind the legal -- lawyers but they haven't come out and made that statement. that's a little bit of a concern to me. and -- i don't know what happens
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from here. but it is a big investigation and i think it is a big deal despite the way the stocks are act. >> is it business as usual as far as could you tell will? >> it really does seem to be. even some of the shareholders we spoke to about what's going on there with the bribery allegations, they are not happy about it but i think at the end of the day the investors looking for a very long term play feel whatever happens to shake out and no matter how damaging financially the short term this will be, walmart is the world's largest retailer in these bribery allegation it is they are found true still won't be enough to really shake down this company from what it is today. >> patrick, what's it take to get to you put a buy on this stock? >> again, bill, i truly was warming up to the story fundamentally. i was -- i hate to say this but thinking about it. pretty seriously, and then this story came out and -- you know, it took a little bit away from my opinion of the company and upper level management so at this juncture, i mean, i guess i
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would have to be -- see a significant pullback from where it is. i think -- >> low to mid 60s. >> all right. patrick, thank you for your candor in that regard. or rarity for many analysts throughout and thanks. courtney, always good to see. >> did you thank you. >> from bank closures to atms shutdowns, that's just some of the fun that greece could endure if sunday's election leads to it going on its own. michelle is here to break it down for us if ever there was a catalyst for greece leaving the euro it is this coming sunday's election. we want to take a look at how does a country greet a new currency? ideally you really want to do it in secret. will is some precedent for that. south sudan created a secret currency back last summer, believe it or not, czech republic did it in 1993. chances of that happening in greece, however, we think that they are pretty write much slim to none. there's just way too many people involved and way too many -- why do you want it to happen in secret, though?
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because the minimum people know that greece might leave the euro, they are starting to -- runs on the banks. you want to get that cold, hard cash out of the bank before it is going to be converted to some other less worthy currency. so we have the bank lines there. what do you do if you are the government? you oppose capital control? you shut down the banks and shut down all the atms from an indeterminate period of time. it is very simple. hey, we have a new currency. all the bank accounts we have will be converted to drachmas, financial contracts out there will now be converted to drachmas. it takes a long time to physically create a currency corks take six months to a year. what do you do for cash in the meantime? this is where it gets tough on the people. lots of choices such as you stick only to electronic transfers with your credit card or your debit card.
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maybe reduced to bartering, ious, you can still use euros. they are going to be converted to the equivalent of drachma. >> and the great fear is inflation will pick up. >> it absolutely will. >> all right. thanks, michelle. may be paranoid but that doesn't mean people aren't out to get them. the super rich, they are deploying dangerous cutting-edge technologies to protect themselves and their property. eamon javers has the new defenses billionaires are using against bad guys. we will talk to a security expert who isn't happy with eamon's report and will explain why coming up in a moment. later, will stocks bounce back tomorrow? three of the street's top strategists will weigh in as we look ahead to the next day of trading. [ male announcer ] introducing a powerful weapon
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in the middle of an ambush. we went to the hollywood hills where we saw technology that can be extremely dangerous. take a look. this is todd. he handles tactical safety. you have a device here that's terrify. >> 15 shotgun shells. >> you mount this into the wall, ceiling or where? >> either. we put it behind walls, behind ceilings so it blends with the architecture. when somebody comes into the house you can remotely press a button and what happen? >> it is not something we do in the u.s. it is something we do overseas. it requires a series of three, four authentications before it can be deployed. then -- >> when you fire this off, could anybody survive underneath this? >> not a chance. >> need lost to say, you don't want to be standing in the foyer when somebody in the panic room presses the button and fires that thing off at you. we have a lot more detail here. 9:30 p.m. tonight when the
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documentary airs. fascinating experience to see how the super rich are protectiprotect ing themselves. it is all adding to to the worry at did bottom ends at the real top as well. >> have you to be careful with which light switch you are turning on when you walk in. >> likes. >> they control that thing with an ipad and you can sit in your panic room with your ipad. you can press that button that sets off the shotgun shells. they have poison gas that came out. i got gas on camera. they used that stuff to incapacitate any intruder as well. i made them check three times before we filmed that scene to make sure the right gas was in the tube. this test gas instead of the actual poison gas. lived. >> we will see this on the new james bond movie coming up thanksgiving as well. >> that's right. >> stick around, eamon. according to our next guest, you can have all the high-powered equipment you want but if you don't have discretion you remain vulnerable. >> like the one we are airing
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tonight at 9:30 king give the wrong people a lot of key information. joining us now is bill daly. with control risk and a former fbi agent with over 25 years of experience in the security field. all right. go ahead. what's your beef with our program tonight? >> not really a beef. i think eamon has done a great job in getting hold of the people really opening up this whole kind of -- subculture world of security for very ultra high net worth individuals. i think it is a great -- very interesting piece he's doing. however, you know, my concern is as a consultant is make sure when people use measures such as this they are done in a more measured way not everyone needs to have all of this high-end equipment and you have to take a look and say what's the risk and where are they 'round the world? what's the appropriate level of security they need? the other thing, too, is that more people know about what security can be for individuals and maybe not just the stuff we know because we can look out on the internet and get information sent to us about it. but it is what goes into someone's personal security to me by talking about that does
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cause some bit of a -- compromise. >> yes. surprise is a key in all of this. eamon, in fact, you didn't get everything you would want from warren buffett's chief of security. there were things he wouldn't tell you. >> a lot he wouldn't tell us. he wouldn't give as you single detail about any of his clients' personal lives or details of their protection. what we did get to see, though, some of the training in a his guys go through in order to give protection to any clients. dan clark runs clark international and works for warren buffet and you see the gas spray coming in. that was a scary moment for me. dan clark runs clark international and he does work for warren buffett. he wouldn't give us a single detail about buffett, security for buffett, anything like that. we saw firearms training, car ambush training and other things they do in order to really train for all of the clients that they represent. >> when i was growing up, i always read that if you just put one of those stickers on your house that said you had an alarm, that men that the thief would just go next door.
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it was really good preventative thing. you don't think it is good people know, boy, these guys have a lot of security, don't mess with them? >> well, i think for those of us who live on every day main street, that sticker, security sign, is a deterrent. i would say, though, people that are looking at targeting ultra high net worth individuals already realize they could be -- there could be something, there could be something in place. there's more security. more that meets the eye. the thing is not to give too much of that away. my other concern is we talk about these high-end james bond-type devices, quite intriguing and having, you know, been there myself like eamon has and seen the stuff, you are concerned over people buying this stuff and not knowing how to properly use it. it could be used against you as well as the intruder. you always wanted to be careful how the stuff is applied even for the wealthy people that think they may know everything about security. >> eamon, as you found -- security expert will -- look to -- an individual's greatest vulnerability, wherever it exists and that's where they
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have to assess the risk and -- in determining security plan for them. >> sliding scale. for each of these folks with the security guys are doing is evaluating that particular individual and the level of threat he or she faces based on his job and his visibility level of fame and amount of money. for example, oceo who laid off tens of thousands of employees in a controversial downsizing may need more security rather than somebody that's building a company that hasn't had to fire anybody. they have to take all of this into account when deciding exactly what the appropriate level of security is before they go into shotgun shells and ceiling level which -- as we have seen. they do do in that one case. >> we look forward to the documentary tonight. 9:30 p.m. eastern. i'm sure you will be watching. >> i will be, for sure. >> thanks for joining us. >> he is getting tips. >> i think he knows all we are about to show tonight. 9:30 p.m. eastern. "fast money" starts in a few minutes. melissa lee with a preview. >> hey, guys. top of the hour, "fast money."
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all eyes on apple. does it matter what they unveiled at the worldwide developers conference 12? we have one top analyst who says apple's days as growth company are over. we have the co-manager of the active bear etf short in the move of may in april. up 19%. we have his top three shorts and we are the head of global qui equities. top three global stock picks right now. all that and much more top of the hour on "fast." see you then. >> what will move your money first thing in the morning? trio of stock pros will give you the inside take next. >> if you are 2350e8g richer these days compared to 2007, you are one of the lucky ones. we will break down the federal reserve's latest report just out today on the net worth of average americans. it is not a pretty sight. ♪
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>> europe, of course. what's on. 30 seconds on the clock. some of our next guests tell us what they think will move the markets tomorrow. >> joining us now, cnbc contributor and jason pride. stephanie we begin with you. you have got 30 seconds. >> a couple of conferences tomorrow. first as morgan stanley's financial services. they have most exposure to housing. stocks down 9%. the other conference is william blair's growth conference. cbs is the one i am keeping an eye on. they are taking market share from wallgreen's. >> well done. >> eric marshall, you are looking at transports and
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cyclicals for tomorrow. why? >> the hodges funds, we see this. we take a look at some of the cyclicals and transports we like. the trucking company and equipment retailer. we also think you can look at some of the beaten down media stocks. >> and jason you are watching the nfib? >> we are if we can get past some of this in europe. and the survey is the major survey that covers how small businesses are feeling and what they're going to likely be doing in the future. it has been sluggish recently and will probably continue to be sluggish for a while but it has been getting better. >> they are all coming in. nice. very efficient.
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stephanie, eric, glaet. thanks for getting us up to speed on what will be important tomorrow. >> the great recession spared no one. >> it's not your imagination if you are feeling it still. we will explain who the shock waves hurt the most when we come back. i went to a small high school. the teacher that comes to mind for me is my high school math teacher, dr. gilmore. i mean he could teach. he was there for us, even if we needed him in college. you could call him, you had his phone number.
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>> according to a new report, the recession absolutely crushed the net worth of american families. >> the median net worth was just over $126,000 in 2007 and fell all the way to $77,000 by 20150. >> let's repeat that again. a drop of almost 40%. a decline in family incomes fell as well as well as the plunge in home equity. in 2007, median home equity stood at $110,000.
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>> and even though americans have been cutting wac on their debt, the decline in home values increased debt as a percentage to assets to just over 16% in 2010. >> another blow to what we tlo dagsally have thought of as the american dream. the push to get more and more people into homes backfired. >> absolutely. >> people who had no business taking on the kind of debt they did to buy the size of the home, the terms of the mortgage and whatever it was came back to bite rve. >> and the increase in net worth was probably a false one. i remember in 2008 when that data first hit, i think we were doing "power lunch" and for the first time since they have been getting that data, the net wort worth. so, in many cases, the declines we are talking about are on
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paper assuming you haven't had to foreclose or sold the house. there is no guarantee that the largest investment you will make in a lifetime, your home. >> often times the vast majority of an individual's net worth is tied up in the biggest asset that they have, which is the house. >> probably number two would be the stock market. let's recap the day on wall street. a quick check there. highs on concerns about europe. the dow snapping its first four day win streak since late april. the s&p declined by 17 points. it did manage to stay above the 1300 level. >> the nasdaq kpos it losing 49 points, the worst drop since the start of june.

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